This strategic collaboration is set to accelerate the development of the Yanbu Green Hydrogen Hub, a fully integrated facility that will be powered entirely by renewable energy.
Larsen & Toubro's Renewables (RENU) vertical has entered into a Memorandum of Understanding (MOU) with ACWA Power, a leading developer of power and water projects, for the Renewables & Grid scope of the landmark Yanbu Green Ammonia Project in Saudi Arabia. The project marks a significant step towards Saudi Arabia's ambitions to become a global leader in clean energy and industrial decarbonization.
The Yanbu Green Hydrogen Hub is designed to be a self-sufficient energy ecosystem. Its Renewables & Grid scope encompasses the development of multiple facilities, including Solar PV, Wind, and Battery Energy Storage System (BESS) plants, along with the necessary substations and transmission lines. This comprehensive infrastructure will provide the captive renewable electricity needed to produce green hydrogen, which will then be converted into green ammonia for export.
The MOU establishes a collaborative framework for the two companies to work together on the design and configuration of the project's renewable energy and grid components. The primary goal is to optimize the system to achieve peak performance targets, leveraging L&T's renowned Engineering, Procurement, and Construction (EPC) expertise. This cooperation includes a commitment from L&T to secure an EPC contract for the project once the final proposal is accepted, a testament to the trust and partnership between the two entities.
In his statement, Marco Arcelli, CEO of ACWA Power, emphasized the rapid progress of the Yanbu Green Hydrogen Project as a clear indicator of the company's commitment to the Kingdom's leadership role in the global energy transition. "By developing and exporting green ammonia, we aim to support international markets in their decarbonization efforts and pave the way for a cleaner, more sustainable world," he said. The project is expected to play a crucial role in helping countries achieve their net-zero targets by providing a source of clean, exportable energy.
T Madhava Das, Member of the Board and Senior Executive Vice President (Utilities) at Larsen & Toubro, highlighted Saudi Arabia's strategic position and visionary initiatives in the clean energy sector. "Saudi Arabia is a key leader in the supply of clean energy and industrial decarbonization," he noted. "It is strategically located between east and west, produces renewable energy at competitive rates, and develops ultra-mega projects with clear timelines." He also underscored the project's importance for the India – Middle East – Europe economic corridor, reinforcing the growing cooperation in sustainable infrastructure between India and Saudi Arabia. This partnership is a major milestone in L&T's journey and a significant contribution to Saudi Arabia's ambitious energy transition goals.
